Part 3: Monitoring, Rebalancing & Continuous Learning

A portfolio isn’t “set and forget.” Over time, strong-performing assets can grow to represent a larger share of your mix, skewing your intended risk profile. Rebalancing—selling overweight positions and buying underweight ones—brings you back to your target allocation. Aim to rebalance:

• Calendar-based: Once or twice a year.
• Threshold-based: When any asset class drifts ±5% off target.

Finally, invest in your own financial education. Keep up with market trends, tax laws, and new product innovations (like sustainable “ESG” funds or digital assets). Revisit your goals annually—life changes (career shifts, family events) may require adjusting your plan.

By clearly defining goals, building a diversified mix, and staying actively engaged through rebalancing and learning, you’ll be well on your way to a resilient, growth‑oriented investment portfolio.